Fitch: Greek Bad Bank Potentially Positive, Likely Insufficient

April 7, 2015 2:16 PM

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(The following statement was released by the rating agency) LONDON, April 07 (Fitch) The Greek government's intention to create a "bad bank" is a positive step towards achieving reform because it recognises that high volumes of non-performing loans (NPL) are impeding new lending, Fitch Ratings says.

Nevertheless, banking sector reform proposals included in a broader package presented to eurozone partners on 1 April 2015 appear insufficient relative to the scale of the problems faced by Greek banks, despite potential benefits for banks' asset quality and liquidity. The package describes banking ...